Oracle NetSuite Inventory Usage Management
Automate inventory deduction from POS sales, track precise ingredient costs, and maintain financial accuracy with the IUM 2026.2 Release.
With the IUM 2026.2 Release, every sale at your POS instantly updates your inventory down to the last gram. Stop guessing your margins and start seeing the real-time profitability of every item you sell.
Eliminate Waste
Real-time ingredient tracking catches leaks before they sink your budget.
Audit-Ready Books
Financial accuracy is baked in, saving you hours of manual reconciliation.
Master Your COGS
Know exactly what your sold items cost today—not what they cost last month.
Module Overview
See Beyond the Sale: From Menu Item to Raw Ingredient
Your POS tracks the finished dish, but your bottom line depends on the ingredients. The Inventory Usage Management (IUM) module bridges this gap by adding a layer of intelligence to your sales data.
How it works:
When a customer orders a “Signature Burger,” IUM doesn’t just record one sale. It instantly references your master recipes in NetSuite to calculate exactly what was consumed: 1 brioche bun, 0.2 kg of ground meat, 1 slice of cheddar, and 15 ml of secret sauce.
The Result:
- Automatic Recipe Explosion: Instantly convert sales units into raw material deductions.
- True Stock Visibility: Know exactly how much flour, protein, or component stock remains without manual counting.
- Accurate Replenishment: Reorder based on actual ingredient usage, not just rough estimates.
Auto-Deduction
Inventory is deducted automatically based on sales orders.
Cost Accuracy
Calculates precise margins by summing ingredient costs.
Smart Substitution
Automatically handles alternate items if primary stock is low.
Operational Flow
The IUM module acts as a bridge between your Point of Sale (POS) system and NetSuite’s backend inventory and financials. It translates finished goods sold at the register into raw ingredient consumption.
1. POS Sale & Integration
A customer purchases a finished product (e.g., a Chicken Sandwich). The POS system pushes this transaction to NetSuite via API, generating a Sales Order marked for IUM processing.
2. Recipe Lookup & Verification
The system identifies the Active Approved Recipe associated with the sold item. It then verifies inventory availability for all ingredients.
Alternate Inventory Logic
If a primary recipe item is unavailable (due to expiration, zero stock, or reservation), the system optionally automatically swaps it for the Approved Alternate Item. Costing and GL postings will immediately reflect the alternate item’s value.
3. Increase Inventory (Optional)
In a busy Outlet/Shop the team sometimes does not have a chance to update inventory as soon as it arrives. In the IUM module this will cause costing problems with zero cost. Optionally the module can temporarily increase inventory to cover this shortage. It can use a predefined cost so that the costing calculations are maintained.
4. Inventory Adjustment
A “Related Production Adjustment” record is created. This deducts the calculated recipe quantities from the specific Outlet/Shop inventory location.
5. Financial Posting
The system calculates the total cost of ingredients and updates the Sales Order line with margin data. The Sold Item inventory quantity is technically increased by the order (temporarily) while the raw materials are decreased, ensuring the GL balances correctly.
6. Sales Analysis & Optimization
Analyze the sales by item, item group, recipe type, location and use the information to determine the best mix and most profitable areas.
Real-time Margin Calculator
Interactive DemoRecipe Explosion (BOM)
Gross Margin
$9.05
Margin %
72.4%
Financial Postings
Upon successful processing of the IUM transaction, the system automatically generates the corresponding General Ledger (GL) impact. This ensures that your inventory valuation and Cost of Goods Sold (COGS) are always accurate and reflect the exact cost of the raw materials consumed.
| Account Type | Account Name | Account Source | Debit | Credit |
|---|---|---|---|---|
| Expense | Cost of Goods Sold (COGS) |
From Item Record COGS account
|
$6.20 | – |
| Asset | Inventory (Raw Materials) |
From Item record inventory asset account
|
– | $6.20 |
| Total: | $6.20 | $6.20 | ||
The values shown above are dynamically calculated based on the sum of raw materials consumed during the Recipe Explosion. If the system utilizes an Approved Alternate Item, the GL impact will accurately reflect the cost of the alternate item used instead of the primary.
If you have the optional increase inventory adjustment switched on the system will increase the inventory of any items that are unavailable in the ingredient location. It will create a separate inventory adjustment. It will use the COGS and the Inventory asset accounts for the adjustment. It will get the increase cost from the field on the item.
Additional Features
Auto-Inventory Increase
If no inventory is present in the outlet (or it has not been recorded), the system can optionally be configured to automatically increase the inventory count in the outlet to allow the transaction to process without errors.
Profitability Reporting
Because margins are calculated at the line level during the transaction, reporting on profitability per item, per category, or per shop is available immediately via standard SuiteAnalytics tools.
Technical Considerations
IUM Control Panel Settings
Global automation configurations available for the environment.
To enable the IUM module correctly, the Sales Order (SO) must be completed with specific technical parameters. The following fields must be completed by the POS interface to ensure successful processing:
IUM Payment Mode
custbody_ium_payment_mode
Must be selected as one of the following:
IUM Payment Method
custbody_ium_payment_method
Condition: If ‘Paid’ is selected above.
This field must be populated with the associated single payment method (e.g., Cash, Credit, Visa Card).
Sales Order Line Items
Production Status IUM
The field ‘Production Status IUM’ must be selected as ‘To Be Processed’.
IUM Payments Sublist
Tab: Custom > IUM Payments
Condition: If ‘Multiple’ is selected in Payment Mode.
The POS interface must supply the various payment methods under the order’s ‘Custom’ tab in the IUM Payments sub list. You must fill in the split payments here.
The sublist custom record is: customrecord_ium_payment
Example Scenario
Total Order: 2,500 PHP
- Line 1: 1,000 PHP (Cash)
- Line 2: 800 PHP (Visa Card)
- Line 3: 700 PHP (Mastercard)
This will generate 3 distinct lines on the IUM Payments list.
The sum of the IUM payments sublist MUST match the sales order amount.
Customer Settings
Entity Configuration
The customer must be fully qualified and in the correct Subsidiary with the GL Accounts configured.
If the accounts use system defaults, ensure that the defaults are specified correctly in the global accounting preferences.
Discounts
Order & Line Discounts
Discount lines are not processed in IUM and if line discounts are needed then they need to be in the line total.
General Configuration
Order Status
Sales Orders must be approved orders.
